Financial Experts - Refi to pay off credit cards, or leave loan balance?

[Barry Smith]

Are there any financial experts out there who can answer this?

Is it better to refinance a house and increase the loan balance to pull equity out and pay off the business credit card balance... that is eating up monthly cash flow?

Or is it better to leave the loan balance where it is and keep paying the credit card bills (and interest) that were created when initial repairs were underestimated.

(The refi will be at a lower interest rate, creating a slightly lower monthly mortgage payment, but a higher mortgage balance.)

Any thoughts on this one?

...

[Sam Elder]

If you are paying a lower interest rate  with a new mortgage than on your existing mortgage balance (win) and less interest on a mortgage than on your credit card balances (win) it seems like a good deal.

Also, you can deduct (for now) mortgage interest on your personal taxes.

The danger is people doing this and then "running up the debt" again.  According to Dave Ramsey, 78% of the time after someone consolidates his credit card debt, the debt grows back.